The agreement, reached following an IMF mission to Harare in June, is subject to approval by IMF management and is being viewed as an important milestone in Zimbabwe’s efforts to clear external arrears, restructure debt and re-engage with the international community.
The IMF said implementation of the 10-month programme has been broadly satisfactory. All quantitative targets for the end of March 2026 were achieved, including those related to the primary budget balance, international reserves, central bank lending, external borrowing and monetary growth. Only one indicative target, covering protected social and priority spending, was missed.
According to the IMF, Zimbabwe’s economy has remained resilient despite a challenging global environment and the impact of conflict in the Middle East, which has contributed to higher fuel and fertiliser prices, increased transport costs and disruptions to global shipping.
Economic growth reached 8.3% in 2025, supported by a recovery in agriculture, strong mining activity and favourable gold prices. The IMF expects growth of around 5% in 2026, while inflation is projected to average approximately 5.1%.
The Fund said low inflation has been supported by tight monetary policy and relative exchange-rate stability. Zimbabwe is also expected to maintain a current account surplus in 2026, aided by mining and agricultural exports as well as remittance inflows, helping to strengthen foreign currency reserves.
However, risks to the outlook remain. The IMF warned that a possible El Niño event could reduce growth to between 2% and 3% in 2027, while a worsening conflict in the Middle East could further disrupt economic activity.
Fiscal performance during the first quarter of 2026 exceeded expectations, driven by strong revenue collection and cautious spending. The IMF welcomed commitments by authorities to keep expenditure within the approved national budget and save additional revenues to create reserves for possible future food security needs.
Mission leader Wojciech Maliszewski said continued fiscal discipline would be essential to preserving stability and strengthening confidence.
The IMF also praised the Reserve Bank of Zimbabwe for maintaining a tight monetary policy stance to contain inflation and reduce pressure on the foreign exchange market. Authorities have begun introducing more market-based monetary tools, including a Zimbabwe Gold term deposit facility, as part of efforts to strengthen financial markets.
The Fund stressed that structural reforms remain vital to sustaining economic progress. Priority areas include improving public financial management, strengthening governance, enhancing social protection programmes and managing fiscal risks more effectively.
The IMF welcomed ongoing efforts to develop a strategy for clearing external arrears and resolving debt challenges, noting that continued progress under the SMP will be crucial in advancing Zimbabwe’s re-engagement agenda and restoring access to broader international financing.
–IMF/ChannelAfrica–
